Bob'29

The Current Market Atmosphere: Easy Money Hard to Come by

During the preceding days of the Bear Stearns buyout the stock did trade at close to $2.00/share, much less than the asset value of Bear Stearn's buildings, offices and real estate that it sat on. Those that bought at those prices made 400%-500% when the sale went through. Washington Mutual is not facing bankruptcy. The conservative S&P revised estimates WaMu at $7.00/share based on 0.3 price to book There are still very big, very well run mutual fund companies, like Oakmark Funds that still hold large quantities of WaMu. I think there might be a good buy in WaMu at these oversold prices.

The Current Market Atmosphere: Easy Money Hard to Come by

The word from the nypost is that J.P. Morgan has Washington Mutual on the top of its wish list of buys. I looked back to March of this year. J.P. Morgan's first offer for Bear Stearns was for $2.00/share. The buy out was finalized at $10.00/share. Does anyone know what the purchase price of WaMu might be. It traded as low as $5.05 (for good reason or not) today down from about $40. not too long ago.